Washington, United States. President Donald Trump announced a trade deal with India to cut U.S. tariffs on Indian goods to 18% from 50% in exchange for India halting purchases of Russian oil and lowering trade barriers. Trump said the agreement followed a call with Indian Prime Minister Narendra Modi.
Tariff changes and oil commitments
Trump announced the deal on social media, saying India would buy oil from the United States and potentially Venezuela. A White House official told Reuters the U.S. was rescinding a punitive 25% duty on all imports from India tied to its purchases of Russian oil that had been added on top of a 25% “reciprocal” tariff rate.
Market reaction
U.S.-listed shares of major Indian companies rose after the announcement. Infosys closed 4.3% higher, Wipro rose 6.8%, HDFC Bank gained 4.4%, and the iShares MSCI India exchange-traded fund rose 3%. Trump’s announcement also added to positive sentiment over semiconductor makers and artificial intelligence, lifting major indexes into positive territory on the day.
Additional purchase and barrier-reduction pledges
Trump said Modi committed India to “BUY AMERICAN at a much higher level,” including more than $500 billion worth of U.S. energy, including coal, along with technology, agricultural and other products. Trump said India would move forward to reduce its tariffs and non-tariff barriers against the United States “to ZERO.”
Details and implementation still unclear
Trump’s message did not specify a start date for the lower tariff rates, a deadline for ending Russian oil purchases, or details on trade barrier reductions and the U.S. products India committed to purchasing. As of late Monday afternoon, the White House had not issued a presidential proclamation or a Federal Register notice required to make the changes official.
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